The Biden administration is facing a $15 billion lawsuit from the energy firm that owns the Keystone Pipeline System.
President Joe Biden canceled the 1,200-mile-long pipeline, which would have carried roughly 800,000 barrels daily, on his first day in office, which caused TC Energy to fire 1,000 workers, the firm said.
Yahoo News July 6, 2021
Okay let’s connect the dots. Team Biden has done the opposite of everything Team Trump did without bothering to consider the consequences. Shutting down construction of the Keystone Pipeline. That meant 48,000 potential new union jobs were cancelled. Oil from Canada would have to be shipped on the slower and far more dangerous rail lines.
Meanwhile Shale Producers have been reluctant to expand operations given the negative outlook of the current administration. And refiners, sensing change in the wind, have cut back on refining anything carbon based. Instead they are re-arranging to distill food based vegetable oil into more environment friendly diesel.
And now with COVID more or less in the rear view mirror, demand for jet fuel and gasoline has exploded. And so have the prices. Nationwide regular gasoline now sells for about $3.25, a huge run up from the low $2.00 range just a year ago.
Recall that while cancelling a US Canada pipeline, Team Biden endorsed a Russian pipeline to Europe. Notice the lack of continuity here? After railing against Russia for the entire Trump administration, now Biden blocks US Energy Independence while handing a bonus to Russian Energy. Already House Democrats are sounding the alarm about running in 2022 with gasoline prices north of $3.00. What to do?
Team Biden is asking OPEC to expand production to provide more oil for refiners to hopefully increase US supply and lower gasoline prices. In short, this is the very opposite of the energy independence brought by fracking. Biden’s opposition to all things carbon is driving our reliance for energy right back to the volatile Mid-East. What next, will he seek to expand Iranian production as he shuts down US exploration?
Today crude oil is trading for $72.37 after a volatile week. Higher gasoline prices in the near future, up another 20-30 cents seems a certainty.
This column has noted the increase in negative social mood which does not support higher stock prices. Many stocks like Proctor and Gamble peaked earlier this year. The three million member American Federation of Teachers endorsed Critical Race Theory at their convention this past week. This is occurring as parent protests to School Boards go viral on youtube.com over just those policies. Expect stocks to exhibit the usual seasonal decline into this fall.